Scottish Government Provides £40M to Support Dundee University Recovery

The University of Dundee is set to receive up to £40 million in additional funding from the Scottish Government via the Scottish Funding Council (SFC) to aid its financial recovery, supplementing an earlier £22 million bailout. This funding, spread over two academic years or three financial years, will be released only after the university develops a sustainable, long-term recovery plan that includes commercial and private investment. The move comes after an independent review by Professor Pamela Gillies criticized the university's governance and financial management, leading to the resignation of the interim principal and other senior officials. Education Secretary Jenny Gilruth emphasized that this unprecedented intervention was necessary due to the exceptional circumstances and the scale of the financial crisis, which includes a £35 million deficit and a liquidity gap estimated between £45 million and £68 million. The government has assured that this funding will not impact other institutions and is focused on ensuring Dundee emerges stronger, while also considering options to strengthen governance across universities in Scotland. Job cuts of around 300 are expected as part of the university's cost-saving measures.